German Logistics Disrupted as Heating Oil Sales Peak: Argus

Falling prices for middle distillates in Germany led to a year-to-date high for heating oil sales, although logistical difficulties continued after recent flooding, Argus said.

• Middle distillate prices fell for a ninth consecutive week, the lowest level since July 2023.
• Traders reported a 72% increase in heating oil demand throughout Germany, the strongest week of the year for heating oil sales.
• However, heavy continuous rainfall has caused high water levels along the Rhine, restricting transport via barge.
• This forced Bayernoil to halt loadings at its 125k b/d Vohburg refinery on June 3 and only slowly resume operations over the week.
• There were also restrictions at the 310k b/d MiRo refinery in Karlsruhe.
• The floods are unlikely to curtail operations such that imports become more profitable, traders told Argus, although barges from the ARA are likely to be cut off from reaching Switzerland.